SAP says it grew across the globe
Germany's SAP, the world's biggest maker of business planning software, said that 2007 results show broad-based regional growth and no signs yet of global economic weakness.
"(Growth) was broad-based across every major region, which means we are not on the edge of a global recession," SAP Deputy Chief Executive Leo Apotheker told a news conference in Silicon Valley.
SAP's software is used by many multinational companies to manage far-flung operations, and Apotheker said his comments were limited to the company's own $15 billion-a-year business and were not meant as a general global economic forecast.
SAP surprised the market on Monday by saying fourth-quarter revenue would be at the high end of expectations. Software and services revenue rose 13 percent to 2.48 billion euros. Sales in the Americas grew 7 percent, while EMEA sales rose 13 percent and Asia-Pacific revenue jumped 27 percent.
IBM posted better-than-expected preliminary results the same day, suggesting technology companies serving corporate buyers remain insulated from broader US economic weakness.
"You know that we had a very strong growth (in 2007)," Apotheker said, but added: "I can't predict 2008 yet."
Apotheker was speaking at a news conference to mark closure of SAP's 4.8 billion-euro acquisition of Business Objects. SAP executives said they would offer more commentary on their 2008 outlook once they publish full results on Jan 30.
He said SAP may benefit, relative to other tech companies, if tougher economic times are ahead, arguing that the Walldorf, Germany-based company's business management software remains relevant as businesses aim to curb costs of global operations.
Agencies
(China Daily 01/18/2008 page16)
